RBA finishes the year as it starts, by leaving the cash rate on hold.
In the lead up to the holiday season, the Reserve Bank of Australia (RBA) has decided to leave the cash rate at 2.5% pa.
It comes as no surprise to industry experts that the cash rate remains unchanged, with Governor Glenn Stevens making special mention of the current lending trends in his official statement today.
“Interest rates are very low and have continued to edge lower over the past year or so as competition to lend has increased…credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise.”
“On present indications, the most prudent course is likely to be a period of stability in interest rates.” Governor Stevens said.
Finsure Group Managing Director John Kolenda concurs with the RBA Official Statement as he believes consumers do not need to wait for the RBA to take action on interest rates, with the highly competitive lending environment meaning banks are receptive to requests for lower home loan interest rates.
“Borrowing costs for banks in the global market have fallen and lenders are in a position to offer highly competitive mortgage products with the home loan customer in a strong negotiating position, particularly if you raise the possibility of looking elsewhere,” he said.